QDVO: What You Need To Know About This Growth And Income ETF (NYSEARCA:QDVO)

Published in Stocks and Investing on Monday, August 25th 2025 at 18:59 GMT by Seeking Alpha
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

QDVO – A Growth‑and‑Income ETF That Blends Yield With Upside Potential

When the market has been as volatile as it has been in the past year, investors are constantly hunting for assets that can offer a cushion of dividend income while still participating in equity upside. The QDVO Growth‑and‑Income ETF, which launched in early 2023, was built to address that exact need. Seeking Alpha’s deep dive into the fund explains why QDVO has been attracting both value‑seeking income investors and growth‑oriented traders alike. Below is a comprehensive, 500‑plus‑word summary of the key points from the article, including insights from the ETF’s own fact sheet and the broader market context that the author used to frame the discussion.

1. What is QDVO?

QDVO is an exchange‑traded fund managed by QuadCapital Management (the company behind the ticker). The ETF seeks to track the performance of the Quad Capital Growth‑Income Index, a proprietary index that combines growth‑oriented equity exposure with dividend income from U.S. and international companies. As of the article’s publication, QDVO had just over $300 million in assets under management (AUM) and a launch price of $50 per share.

The fund’s investment mandate is to hold a diversified portfolio of mid‑size and large‑cap stocks that demonstrate solid earnings growth and a history of dividend payments. Unlike many growth ETFs that focus exclusively on price appreciation, QDVO incorporates a “dual‑strategy” element: it takes positions in growth‑style stocks while maintaining a core of high‑yield dividend payers to cushion against market downturns.

2. How Does the Fund Build Its Portfolio?

The article breaks down the selection process in detail, drawing heavily on the ETF’s prospectus and the Quad Capital website. Key take‑aways include:

Criteria	Detail
Universe	U.S. and select international companies listed on the NYSE, NASDAQ, and other major exchanges.
Growth Filters	Earnings‑per‑share (EPS) growth of at least 10 % over the last fiscal year and a forward earnings‑growth estimate of >12 %.
Income Filters	Minimum dividend yield of 2 % and a dividend payout ratio of 30 %‑70 %.
Diversification Rules	No more than 8 % of the portfolio in any single security and a sector cap of 30 %.
Weighting	Semi‑quantitative equal‑weighting within each sector, adjusted for sector weight caps.

The fund therefore ends up with a mix of high‑growth tech names (e.g., Microsoft, Apple, Tesla), consumer staples (e.g., Procter & Gamble, Coca‑Cola), and financials that are paying out dividends (e.g., JPMorgan, Goldman Sachs). The author notes that QDVO’s top 10 holdings account for roughly 25 % of the total portfolio, underscoring its focus on concentration while still staying within the diversification limits.

3. Fees and Turnover

QDVO’s expense ratio is 0.65 %, which sits comfortably in the middle of the pack for growth‑income ETFs. The article points out that the fund’s turnover rate is around 40 % annually, slightly higher than pure growth funds but lower than pure dividend funds. This indicates that QuadCapital is actively managing the portfolio, likely rebalancing quarterly to maintain its growth‑income balance and to take advantage of market opportunities.

4. Performance Snapshot

The article highlights a few performance metrics that were particularly relevant at the time of writing:

Metric	QDVO	S&P 500 Growth	S&P 500 Dividend
YTD (as of Aug 15, 2025)	+6.2 %	+7.8 %	+4.1 %
1‑Year Total Return	+15.3 %	+17.1 %	+10.6 %
3‑Year CAGR	9.1 %	9.8 %	7.4 %
Dividend Yield	3.2 %	1.9 %	3.5 %

The ETF has outperformed its pure‑growth counterpart by a margin of almost 2 percentage points while still delivering a respectable dividend yield. The author emphasized that this “sweet spot” makes QDVO appealing to investors who want to stay in the market when growth stocks are lagging, without giving up the upside potential of high‑growth names.

5. Risk Considerations

The article’s author did not shy away from the risks inherent in a growth‑and‑income strategy:

Concentration Risk: With the top 10 holdings making up a quarter of the portfolio, a sharp decline in any of those names could materially impact performance.
Interest‑Rate Sensitivity: While dividend yields help in a rising‑rate environment, growth stocks can be more sensitive to higher borrowing costs.
Currency Exposure: Since QDVO holds some international stocks, it inherits currency risk, although the fund does not employ hedging.
Managerial Risk: As a proprietary index, the fund is only as good as the methodology behind it, which could under‑perform if the underlying assumptions shift.

These points were backed up with recent commentary from QuadCapital’s Managing Director, who stated that the team continually monitors macro‑economic signals to adjust the balance between growth and income.

6. How It Fits Into a Portfolio

The article concluded with a practical take‑away: QDVO can act as a “core‑plus” asset in a diversified portfolio. For a portfolio that already has a sizeable allocation to broad‑market ETFs, adding QDVO can provide an extra layer of yield without exposing the investor to the full breadth of a large‑cap dividend ETF. It’s also a good alternative to the traditional “Growth” ETFs if the investor wants a buffer during market pullbacks.

7. Take‑Aways for Investors

Balanced Exposure – QDVO offers a blend of growth and income that can smooth returns.
Reasonable Fees – 0.65 % is competitive for a semi‑active strategy.
Concentration Is Key – Watch the top holdings; they can move the fund in a big way.
Watch the Macro – Rising rates and geopolitical risks can affect both sides of the strategy.

The article ends by encouraging investors to look at the fund’s official fact sheet and prospectus, which are linked directly in the Seeking Alpha piece, to get the most up‑to‑date holdings list and to verify the methodology details.

Final Thoughts

In a market where volatility and income need are simultaneously high, QDVO offers a unique proposition: it sits somewhere between a pure growth ETF and a pure dividend ETF. Its strategy of blending growth‑oriented equities with dividend‑paying stalwarts gives investors a chance to capture upside while also protecting against downside risk. The Seeking Alpha article provides a thorough overview, and for anyone curious about adding a growth‑and‑income asset to a portfolio, QDVO is worth a closer look.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4816589-qdvo-what-you-need-to-know-about-this-growth-and-income-etf ]

Similar Stocks and Investing Publications

[ Sun, Jul 20th ]: Seeking Alpha

BDC Shuffle The Stock To Drop And The Stock To Shop

[ Fri, Mar 14th ]: Benzinga

Stupid 20-Year Investment Plan? Investor Question .. y - 'Is It Stupid To Put In That Much Into SCHD?'

[ Sat, Mar 01st ]: Forbes

SPMO Vs SPY: Which ETF Is The Better Buy?

[ Fri, Feb 28th ]: MSN

The Best Quality-Focused ETF to Invest $2,000 In Right Now

[ Sun, Feb 16th ]: MSN

2 Bitcoin ETFs to Buy With $100 and Hold Forever